Context:

The Reserve Bank of India is targeting to roll out the e-Integrated Ombudsman Scheme in June 2021.

Current Ombudsman schemes

• Presently, there are three dedicated ombudsman schemes for:
  • Banking sector
  • Non-bank finance companies
  • Digital transactions.

The ‘e-integrated Ombudsman Scheme’

• Single platform: RBI is targeting to make an alternate dispute redressal
• Aim: It aims to mechanism simpler and more responsive. The move is intended to make the process of redress of grievances ease.

Ombudsman

• An ombudsman is an official who investigates complaints against businesses, financial institutions, universities, government departments, or other public entities.
• Function: He/She attempts to resolve the conflicts or concerns raised, either by mediation or by making.

Banking Ombudsman Scheme

• About:
  • The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.
  • Presently the Banking Ombudsman Scheme 2006 (As amended up to July 1, 2017) is in operation.
• Banks covered:
  • All Scheduled Commercial Banks, Regional Rural Banks, and Scheduled Primary Co-operative Banks are covered under the Scheme.

Ombudsman Scheme for Non-Banking Financial Companies.

• It is an expeditious and cost-free apex level mechanism for the resolution of complaints of customers of NBFCs, relating to certain services rendered by NBFCs.  The Scheme is being introduced under Section 45 L of the Reserve Bank of India Act, 1934, with effect from 2018.
• NBFCs covered under the Scheme
  • NBFCs, which (a) are authorized to accept deposits; or (b) have customer interface, with assets size of one billion rupees or above, as on the date of the audited balance sheet of the previous financial year, or of any such asset size as the RBI may prescribe, are covered under the Scheme.
  • The Scheme initially covers NBFCs authorized to accept deposits and would be gradually extended to cover other identified NBFCs.

Ombudsman Scheme for Digital Transactions, 2019

• About: 
  • It is an expeditious and cost-free apex level mechanism for the resolution of complaints regarding digital transactions.
  • The Scheme is being introduced under Section 18 Payment and Settlement Systems Act, 2007, with effect from 2019.
• Entities covered under the Scheme
  • The Scheme has been made applicable to System Participants as defined in Clause 3 (11) of the Scheme.